June 17, 2005
Issue #24-2005
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LEGISLATIVE BILL SUMMARIES
MAYORS AND COUNCIL MEMBERS WORKSHOPS
Page 3
Page 5
On Wednesday, June 15 — the constitutional deadline for the Legislature to
pass a budget — the budget bill (SB 77) failed passage in both the Assembly
and the Senate on partisan votes. For more, see Page 2.
SENATE AND ASSEMBLY FAIL TO PASS BUDGET
Thanks in great part to the leadership of Assembly Housing and Community
Development Committee Chairman Gene Mullin, on Wednesday, June 15, the
committee adopted amendments to Senate Bill (SB) 435 (Hollingsworth) that
now essentially make the bill a technical cleanup measure to SB 1818. For
more, see Page 5.
SB 435 AMENDED TO ADDRESS LOCAL GOVERNMENT CONCERNS
CITY OFFICIALS URGED TO CONTINUE TO MONITOR THE BILL
On Tuesday, June 14, the Mayor of Long Beach, Beverly O’Neill, was
sworn in as the 63
rd
President of the United States Conference of Mayors at
the organization’s 73
rd
Annual Conference in Chicago. For more, see Page 4.
BEVERLY O’NEILL SWORN IN AS PRESIDENT OF
THE U.S. CONFERENCE OF MAYORS
JUNE 23-24, LEAGUE
POLICY COMMITTEE
MEETINGS, ONT ARIO.Visit the League’s Official Website--www.cacities.org
PAGE 2/PRIORITY FOCUS
Democrats portrayed SB 77 as “the governor’s
budget” suggesting that it is only 2 percent different
than his May revision proposal. Republicans
countered by suggesting that the increased spend-
ing above the May revise has just added more to
the state’s ongoing operating deficit.
Republican Assembly members also expressed
concerns about the budget conference committee’s
decision to eliminate the early repayment of one-
half of the VLF gap loan to local governments.
They talked about the impact the action would have
on front line public safety, how it adds to the oper-
ating budget next year, and how it “turns our back”
on local governments. Instead of the early repay-
ment of close to $600 million, the conference
committee set-aside $25 million that could be used
to help out cities and counties who have a “hard-
ship” without the early repayment of the VLF gap
loan, as well as cities and special districts experi-
encing “hardship” due to the lack of booking fee
subventions. The Department of Finance is
charged with determining what “hardship” means
and who qualifies. That process has not yet begun
- we will inform members when details become
available.
Following the budget vote, Assembly members
discussed AB 6 - a bill that would raise the tax rates
on upper income taxpayers and which, Democrats
hoped, would help fund education into the future
(although it is currently written to benefit the state
general fund).
The Assembly remains on the call of the chair
through the weekend with their next session sched-
uled for noon Monday. The Senate will be ready to
meet upon the call of the chair on Monday.
Other items contained in the currently proposed
budget include:
• Proposition 42. Full funding of Proposition
42 (transportation) in the 2005-06 fiscal year,
including $254 million for local streets and roads.
• ERAF shift. $1.3 billion ERAF shift from
cities, counties, special districts and redevelopment
associations to the state as agreed to in the Propo-
sition 1A agreement.
• Police Officer’s Bill of Rights (POBAR)
mandate. Removes recommended funding of the
Police Officer’s Bill of Rights mandate and refers
the mandate back to the Commission on State
BUDGET UPDATE from page 1
Mandates for reconsideration.
• Open Meetings Act mandate. Makes
changes to elements of the law to allow any stat-
utes of law that are defined as necessary to “imple-
ment” a voter-approved proposition to be exempt
from state reimbursement as a mandate, and
subsequently makes changes to the procedures
under the Open Meetings Act that are currently a
reimbursable mandate that define them as neces-
sary to implement Proposition 59 as passed by the
voters last November. The state indicates that this
removes future obligations of the state to reimburse
locals for these procedures (language and full
details on mandate actions is not yet available. We
will provide updates to members on these items in
the future).
• Mandates. Fully fund many reimbursable
mandates for 04-05 claims (exact list is not yet
available). Provides 05-06 funding for some man-
dates and based funding on estimated claims less
25 percent to account for an increase in audits and
subsequent savings. Defers funding on other
reimbursable mandates. The full list of mandates
and funding levels are available on the League’s
website.
THE LEAGUE’S POSITION
The League appreciates and supports the
Legislature’s commitment to fully fund Prop.
42, providing sorely needed help for locals for
street and road maintenance.
While the League supports the Budget Confer-
ence Committee’s recommendation to allocate
$25 million for VLF and booking fee hardship
cases, we oppose the committee’s elimination
of the early repayment of half of the 2003 VLF
gap loan. These funds would help pay for
much-needed services in cities that are still
recovering from the recent economic downturn
- and which in both the current fiscal year and
next year will contribute a portion of the $350
million ($700 million total) that all California
cities will contribute to help the state resolve its
budget problems.
The state is obligated by statute to repay the
full $1.1 billion amount of the VLF gap loan in
August 2006. The League will continue to work
for this repayment.PRIORITY FOCUS/PAGE 3 Visit the League’s Official Website--www.cacities.org
Legislative Bill Action
The following are summaries of just a few of the legislative bills that are currently being acted upon
by the League of California Cities. For more information about these and other bills, please visit the
League website to access information about legislation, policy issues and related developments.
You can track information on bills (www.cacities.org/billsearch), locate legislators and legislative
committees, send letters to legislators or the media through the online Advocacy Center
(www.cacities.org/advocacycenter), research League policy positions, access useful related
links, and much more.
TRANSPORTATION
AB 453 (Benoit). Grade Separation
Projects. AB 453 increases, from one year to
two years, the time period in which a local
agency must promise to begin a grade separa-
tion project (to separate a roadway from a
railroad crossing), and complete related pre-
construction activities, before it can receive a
grade separation project allocation from the
California Transportation Commission (CTC).
Grade separations can vastly improve safety
at a particular intersection, but are generally
reserved for particularly dangerous areas be-
cause of high expenses. Each grade separation
project can cost at least $20 million and take
years to complete. Extending the period for local
agencies to begin a project to a two-year window
will require an agency to make a diligent effort to
expedite the project while eliminating the neces-
sity to repeatedly burden the Department of
Finance with time waiver requests. AB 453
allows local agencies more time to satisfy the
requirements related to the use of state-allo-
cated grade separation project assistance.
Staff: Liisa Lawson Stark, Status:
SenTrans&Hou, Hrg. June 21, Position:
Support.
ENVIRONMENTAL
SB 668 (Kuehl). Surface Mining and
Reclamation Act. Cities that are lead agencies
under the Surface Mining and Reclamation Act
(SMARA) should review SB 668 carefully. The bill
makes a number of minor and moderate changes
to SMARA, including changes that would impact
lead agencies. Although most SMARA lead
agencies are counties, about 20 cities are ap-
proved as SMARA lead agencies. Interested
cities should send their comments to the author
and the League’s Sacramento office. Staff:
Yvonne Hunter; Status: AsNatRes, Hrg. June
27; Position: Watch.
WANT TO SEND A LETTER IN SUPPORT
OF A LEAGUE POSITION? HERE’S WHO
TO CALL:
ASSEMBLY NATURAL RESOURCES
(10)—Hancock (Chair), La Malfa (Vice Chair),
Gordon, Harman, Keene, Koretz, Laird, Nava,
Saldaña., and Wolk. 1020 N Street, Room 164.
Phone: (916) 319–2092.
SENATE TRANSPORTATION AND HOUS-
ING (14)—Torlakson (Chair), McClintock (Vice–
Chair), Ashburn, Cedillo, Ducheny, Kehoe,
Lowenthal, Machado, Maldonado, Margett,
Murray, Runner, Simitian, and Soto. Staff Director:
Steven Schnaidt. Principal Consultant: Randall
Henry. Consultant: Mark Stivers. Assistant Tracey
Hurd–Parker. Phone: (916) 445–3182. Room
2209.Visit the League’s Official Website--www.cacities.org
PAGE 4/PRIORITY FOCUS
During O’Neill’s inaugural address, she
stressed the importance of focusing on preserv-
ing Community Development Block Grant
(CDBG) funding, gang violence, homeland
security, transportation and infrastructure invest-
ment, jobs and education, housing, tax reform,
military and international affairs, and metro
economics.
“Metro economics are essential to the pros-
perity and continued health of our nation,” said
O’Neill. “It is a story we must continue to tell.”
League of California Cities’ Executive Direc-
tor Chris McKenzie, who was in attendance at
the conference, spoke highly of Mayor O’Neill,
and the professionalism she brings to the table.
“Mayor O’Neill has earned the respect of
municipal officials across the country, and her
election as President of the U.S. Conference of
Mayors demonstrates the high esteem in which
she is held,” he said. “She will do an outstanding
job of leading the mayors of the nation as they
work to protect the Community Development
Block Grant program (CDBG), advance Home-
land Security at the local level, and partner with
other associations such as the National League
of Cities to advance the municipal agenda.”
Mayor O’Neill is the only three-term, citywide
elected mayor in Long Beach. First elected in
Beverly O’Neill, newly-elected president of the
U.S. Conference of Mayors, delivers her inaugural
address on June 14, in Chicago.
O’NEILL from page 1
1994, she was re-elected in 1998 with almost 80
percent of the vote, and then re-elected for a third
term in 2002 as a write-in candidate – the nation’s
only large city mayor to have ever accomplished
such a feat.
In addition to O’Neill’s current duties in the city
of Long Beach, she is also a member of the League
of California Cities’ board of directors, and served
as its president during 2001-2002.
“Mayor O’Neill did an outstanding job leading the
League during her year as president, and she will
bring the same vision and enthusiasm to her duties
as president of the U.S. Conference of Mayors,”
McKenzie added.
Plan now to attend the 2005 Annual
Conference this fall - the first time it has
been in San Francisco since 1997. Sugges-
tions for topics to include on the agenda are
welcome by February 28; send them to
education@cacities.org.
The conference announcement will be
out by early June, and the League’s re-
duced rate housing block at six nearby
hotels will open June 1 on the League
website (Reservations made before then
will not be in the block or get the discounted
room rate).
2005 ANNUAL CONFERENCE:
OCTOBER 6-8, MOSCONE
CONVENTION CENTER WEST,
SAN FRANCISCOVisit the League’s Official Website--www.cacities.org PRIORITY FOCUS/PAGE 5
SB 435 from page 1
SB 435 proposed to further amend changes to
the state’s housing density law that were enacted
by SB 1818, passed in the prior legislative session
and in effect only since January 2005. The
League, the American Planning Association (APA)
and the California State Association of Counties
(CSAC) had strongly opposed SB 1818, which
required communities to provide up to three con-
cessions and 35 percent density bonuses to
developers, while reducing the amount of afford-
able housing that a developer was required to
provide under prior law.
Implementation of SB 1818 has been difficult
and confusing: city planners and attorneys have
been uncertain as to how to implement its provi-
sions in concert with other state laws and local
requirements.
This year the League, APA and CSAC opposed
SB 435, based on concerns that the measure
would undermine inclusionary housing ordinances,
allow unlimited variances from local development
standards, and provide unneeded extra conces-
sions to applicants who choose not to use the full
density bonus. We were also concerned that SB
435 simply would amend SB 1818 too quickly,
before cities had had an opportunity to determine
the effects of the prior year measure.
Close Monitoring of SB 435 Still Important
While the amendments taken in committee this
week have allowed the League to adopt a neutral
position, city officials should be aware that support-
ers of the measure — the California Association of
Realtors (CAR) and the California Rural Legal
Assistance Foundation (CRLAF) — have indicated
their intent to continue to press for removal of the
requirement that the developer demonstrate that
the development standard from which it is request-
ing a waiver is necessary to make the project
economically feasible. Earlier alternatives to that
provision from the proponents placed that obliga-
tion on the city or county.
Therefore, the League will continue to closely
watch the bill as the legislative session progresses,
and city officials are urged to also monitor the bill
carefully.
Remember to Say “Thank You”!
City officials should be sure to thank
Assemblymember Mullin for his efforts on this hard-
fought bill.
In addition, city officials should thank Assembly
Housing and Community Development Committee
members Salinas, Hancock, Torrico, Baca, LaSeur,
and Garcia for helping get the proposed amend-
ments into the bill. The League also thanks cities
for their efforts to educate legislators about the
League’s concerns over SB 435.
Five advanced leadership workshops are being
offered in Monterey next month, following the
Mayors and Council Members Academy Executive
Forum. Each workshop will last five to six hours
spread over Friday afternoon and Saturday morn-
ing, July 29-30.
The workshops will cover topics essential for
elected officials to understand. They include
development and redevelopment; homeland secu-
rity, effective governance processes, building
collaborative processes to help govern your city,
and a skill-building workshop on becoming a more
effective presider at meetings.
These are important issues that elected officials
face. Take this opportunity to enhance your lead-
ership skills by registering for one or more of these
workshops. For registration information, please
visit www.cacities.org/events.
REGISTER NOW!
MAYORS AND COUNCIL MEMBERS
ACADEMY ADVANCED
LEADERSHIP WORKSHOPS